Oil Spill Claims Process May Sink Gulf Coast Shrimp Processors

October 30, 2012 07:00 AM Eastern Daylight Time

GULFPORT, Miss.--(BUSINESS WIRE)--With looming legal deadlines related to the 2010 BP oil spill, dozens of
shrimp processors along the Gulf Coast face a difficult dilemma, with
either decision having the potential to jeopardize the future of their
businesses and the region’s seafood industry, according to a leading
trade association.

All pending claims for damages related to the oil spill have been
consolidated into a class-action settlement, even for those who have not
filed a lawsuit against BP. A hearing to consider motions objecting to
the fairness of the terms is scheduled for Nov. 8, seven days after the
deadline to opt out of the settlement.

The American Shrimp Processors Association, representing companies
accounting for 85 percent of the shrimp processed from the Gulf of
Mexico, has seen its members struggle as the claims process has dragged
on.

“The progress we made in educating BP, then its accounting firm, then
the Gulf Coast Claims Facility about our role in the seafood supply
chain is not reflected in the class-action settlement terms,” said David
Veal, ASPA executive director.

The class-action settlement excludes processors from the Seafood
Compensation Program, which uses a different formula and series of
assumptions to evaluate damages. Processors have instead been grouped
with retail stores, restaurants and other non-seafood businesses.

David Veal stated, "Basing the claims settlement process on the mistaken
assumption that seafood processors share similar losses and future risks
as retail stores and restaurants, and subsequent delays in reimbursement
may threaten the shrimp processing industry more than the actual oil
spill."

“The difference in relative compensation between the groups inside the
Seafood Compensation Program and those seafood businesses outside the
Program is vast and could create industry damage beyond the oil spill
itself,” Veal said.

About the American Shrimp Processors Association: The American
Shrimp Processors Association (ASPA) is a non-profit trade organization
designed to represent U.S. shrimp processors in all aspects of business.
It has been proudly representing, protecting and promoting the interests
of the U.S. domestic shrimp industry since 1964. For more information,
visit the ASPA website at http://www.americanshrimp.org.